The rules for overseas listing of domestic enterprises were announced, and the reform of the capital market was steadily promoted
On December 24, the CSRC issued regulations on the administration of overseas securities issuance and listing of domestic enterprises (Draft for comments) and supporting management measures and rules, which specify that enterprises that meet the vie framework can go abroad for listing after the review process. The main contents are 1) improve the regulatory system. Implement unified filing management for direct and indirect overseas listing activities of domestic enterprises. 2) strengthen regulatory coordination. Establish a regulatory coordination mechanism for overseas listing of domestic enterprises; overseas listing filing management and safety review And other mechanisms; We will improve cross-border securities regulatory cooperation arrangements and establish mechanisms such as filing and information notification. 3) Clarify legal responsibilities. Clarify the legal responsibility for non-compliance with filing procedures, counterfeiting of filing materials and other violations, and increase the cost of violations. 4) Enhance institutional inclusiveness. Combined with the practice of expanding the opening of the capital market and the needs of supporting enterprise development, it is clear that under the circumstances of equity incentive, overseas direct issuance and listing can be issued to specific domestic entities. This rule has improved the regulatory system for overseas listing of enterprises and deepened the reform of the capital market.
Securities industry perspective
Recently, the average daily turnover of the two cities has returned to the normal level of trillion scale, with active transactions. From the perspective of supervision, the policy continues to be loose and good, providing a good development environment for the securities industry. In 2018, after experiencing the stage of large impairment losses caused by credit default events and the continuous downturn of the market, the securities industry began to repair its performance upward since 2019. In terms of policy, the timely RRR reduction signal proposed by the national high level recently is expected to stimulate the vitality of the overall financial sector, and then stimulate the valuation repair and upward of the securities sector.
At the current stage, we believe that the long-term benefits brought by the transformation of brokerage business to wealth management mode are the main performance growth point of the securities industry. The main reason is that residents’ deposits are gradually changing from banks that bring low returns and liquidity to the stock market that can bring high returns and liquidity, which is superimposed on the expansion of the pilot fund investment adviser of securities companies and the gradual expansion of fund holdings, The outlook of the securities industry is rising. Affected by the tone of recent national conferences, the measures of reducing reserve requirements and interest rates and the traditional “year-end effect”, the repair trend of the overall stock price of the securities industry has been started and is expected to continue to rise. In addition, the establishment of Beijing stock exchange will directly promote the growth trend of IPO business, and is expected to improve the activity of relevant business markets and continue to catalyze the performance of securities companies.
Risk statement
The implementation effect of the policy is less than expected, or even tightened, liquidity tightened, stock based turnover fell sharply, and the overall market downside risk.
